A group of 62 organisations, spearheaded by the National Farmers Union (NFU), has sent a letter to President Biden, urging prompt action on the Packers and Stockyards Act (P&S Act). This law established a hundred years ago, is essential for protecting farmers and ranchers from the dominating power of large monopolies in the livestock industry.
However, its effectiveness has waned over time due to legal challenges.
The Biden administration’s executive order on competition mandates the USDA to rejuvenate the P&S Act by introducing new rules to strengthen it. The NFU and its allies have expressed support for the USDA’s recent rule that enhances clarity in poultry contracts and the upcoming rule to better protect market-vulnerable individuals.
Yet, they emphasise that critical aspects of reinforcing the P&S Act are still pending. These include a comprehensive rule to address abuses in the poultry contract growing system and a rule to clarify that proving industry-wide harm is unnecessary to establish a P&S Act violation.
The letter highlights the vulnerability of these rules to opposition from those against competitive agricultural markets, referencing similar unsuccessful efforts during the Obama-Biden administration.
Additionally, the organisations recognise the Biden Administration’s significant efforts in combating monopoly power and enforcing antitrust laws surpassing any recent administration.
They highlight the collaborative work of the DOJ, FTC, and USDA in response to the executive order’s directives, aiming to improve competition in the food and farm system, including the USDA’s partnership with state attorneys general to address anticompetitive practices in agricultural supply chains.
Rob Larew, President of the National Farmers Union, commends the Biden Administration for its actions against corporate monopolies and emphasises the importance of the USDA’s ongoing work to revitalise the Packers and Stockyards Act. He stresses the necessity of completing the remaining rules promptly.
This collective call to action underscores the urgency of implementing effective measures to ensure a fair and equitable agricultural market, protecting the interests of farmers and ranchers nationwide.
